CAPITAL GROUP ŻYWIEC S.A.
Q1 2019
Consolidated Quarterly Financial Statements according to IFRS for the first quarter of 2019 ended on 31st March 2019
CAPITAL GROUP ŻYWIEC S.A. | |
Consolidated quarterly financial statements | |
As on and for the period ended 31.03.2019 | TRANSLATION ONLY |
I.Principles of preparing the Consolidated Quarterly Financial Statement of the Capital Group Żywiec
S.A.
The consolidated interim abbreviated financial statements were prepared according to International Accounting Standards, International Financial Reporting Standards and the Cabinet Decree dated 29th March 2018 on current and periodical information and reports disclosed by joint stock publicly traded companies and conditions of recognizing information as required by the law of a country not being a Member of the European Union (Journal of Laws 2018 item 757).
These consolidated interim abbreviated financial statement should be read with the consolidated financial statement for the financial year ended 31st December 2018.
The financial data for these consolidated interim abbreviated financial statement have been prepared according to the accounting principles and calculation methods, stated in the last consolidated annual financial statement for 2018, except for changes in accounting policy due to implementation of IFRS 16 as from 1 January 2019.
The Group has decided to use the modified retrospective approach (with joint effect of first use) in line with IFRS 16:C5(b). As a result, the Group has not restated the comparative data, but included the cumulative effect of IFRS 16 as a capital adjustment (through undistributed profit) as of 1 January 2019.
Detailed information on the changes related to IFRS 16 implementation has been provided in point XXIV of these consolidated report for Q1 2019.
All the amounts in these consolidated financial statement are given in thousands PLN and in units (number of shares).
II.Capital Group Żywiec S.A. organization structure
As on 31st March 2019 Capital Group Żywiec S.A. ("The Capital Group") consisted of 6 companies (including 2 production companies). The Group's parent company is a joint stock company Grupa Żywiec S.A. The remaining companies are direct subsidiaries of Grupa Żywiec S.A., except for Browar Zamkowy Cieszyn Sp. z o. o. which is a subsidiary of Żywiec Investments Holding Sp. z o. o. Rolno-Spożywczy Rynek Hurtowy "Giełda Elbląska" S.A. and Distribev Orbico Sp. z o. o. are associated companies of Grupa Żywiec S.A. The Group's principal activity is the production and distribution of beer, designated by the Code PKD 2007 - 1105 Z.
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CAPITAL GROUP ŻYWIEC S.A. | |
Consolidated quarterly financial statements | |
As on and for the period ended 31.03.2019 | TRANSLATION ONLY |
GRUPA ŻYWIEC S.A.
Subsidiaries | Associated companies | |||||||||||||||||||
(full consolidation) | (consolidation of equity | |||||||||||||||||||
method) | ||||||||||||||||||||
Żywiec Investments | Żywiec Sprzedaż i | |||||||||||||||||||
Distribev Orbico | Rolno-Spożywczy Rynek | |||||||||||||||||||
Holding | Dystrybucja | |||||||||||||||||||
Hurtowy "Giełda | ||||||||||||||||||||
Sp. z o.o. | Sp. z o.o. | Sp. z o.o. | ||||||||||||||||||
Elbląska" S.A. (60,35%*) | ||||||||||||||||||||
(100%) | (100%) | (20%**) | ||||||||||||||||||
Browar Zamkowy | ||||||||||||||||||||
Cieszyn Sp. z o.o. | ||||||||||||||||||||
(100%) | ||||||||||||||||||||
*Grupa Żywiec S.A. owns 43.52% of votes on the General Shareholders Meeting of the Rolno-Spożywczy Rynek Hurtowy "Giełda Elbląska" S.A.
**Grupa Żywiec S.A. owns 20.00% of votes on the General Shareholders Meeting of the Distribev Orbico Sp. z o. o.
III.A brief description of significant achievements and failures taken by issuer during the period to which report is related
On 27th February 2019 the President of the Office for Protection of Competition and Consumers gave their unconditional consent for concentration comprising of purchase by Grupa Żywiec S.A. from Chicago Poland Investment Group, LLC of 100% of shares in the share capital of Browar Namysłów Sp. z o.o. Therefore, the suspending condition from the Selling Agreement concluded on 12th November 2018 between the Company and Chicago Poland Investment Group, LLC has been fulfilled, which enables the parties to finalise the disposal agreement allowing Grupa Żywiec S.A. to acquire the shares of Browar Namysłów Sp. z o.o.
On 6th March 2019 the Supervisory Board of Grupa Żywiec S.A., acting on the strength of Article 368 § 4 of the Commercial Companies Code and upon a motion of the President of the Management Board, decided to reappoint Mr. Andrzej Borczyk and Mr. Michael McKeown as Members of the Management Board of Grupa Żywiec S.A. for the next three year term.
On 27th March 2019 the Company and Bank Pekao S.A. signed:
•an annex to the Credit Limit Agreement entered into on 30th December 2013, extending the credit repayment period until 31st May 2022 and increasing the amount of the available credit limit from PLN 250 million to PLN 350 million, and
•an annex to the Overdraft Facility Agreement entered into on 25th May 2005 for PLN 120 million, extending the overdraft repayment period until 31st March 2020.
Both facilities are intended for financing current operations of the Company. The price of the facilities is based on a variable WIBOR rate plus margin. The remaining provisions are similar to those commonly used in these types of agreements.
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CAPITAL GROUP ŻYWIEC S.A. | |
Consolidated quarterly financial statements | |
As on and for the period ended 31.03.2019 | TRANSLATION ONLY |
On 29th March 2019 the Company and Bank Handlowy w Warszawie S.A. entered into:
•a Long-Term Credit Agreement with a credit limit up to PLN 300 million, valid until 31st March 2022. The credit is intended for financing current operations of the Company. The price of the credit is based on a variable WIBOR rate plus margin. The remaining provisions are similar to those commonly used in these types of agreements; and
•an annex to the Long-Term Credit Agreement entered into on 22nd July 2016 for PLN 200 million, terminating the said Agreement effective from 29th March 2019.
The aforementioned credit agreements entered into with Bank Handlowy w Warszawie S.A. and Bank Pekao | |
S.A. on jointly reflect the changes in the financing structure available to Grupa Żywiec S.A. and are significant | |
agreements owing to their total value. | |
IV. | Description of selected financial data and events having the significant impact on the level of achieved |
financial result | |
Capital Group Żywiec S.A. | |
Q1 2019 | |
After an exceptionally good 2018, the Group continued its value-creation strategy and increased share of sales | |
in both premium beers and innovations, leading to positive growth in revenue per hectolitre of beer. As a result | |
despite lower sales volume total revenue was at a similar level to the first quarter of 2018. Further increase in | |
production costs, specifically raw materials, energy and packaging had a significant impact on the Group's | |
operations impacting operating profit. | |
"We are pleased with our 2019 results to date, in particular with the growth coming from the upper end of our | |
portfolio. This supports our commitment to continue and accelerate our value strategy." - said | |
Francois-Xavier Mahot, President of the Management Board of Grupa Żywiec S.A. | |
In the first quarter of 2019: |
•Consolidated revenue from the sale of products, goods and materials reached PLN 606,693 (2018: PLN 604,448 thousand)
•Consolidated operating profit was 3% lower at PLN 12,477 thousand (2018: PLN 12,894 thousand)
•Capital Group Żywiec S.A. net profit was PLN 6,493 thousand (2018: PLN 4,511 thousand).
Grupa Żywiec S.A.
Q1 2019
In the first quarter of 2019 net revenues from sales of products, goods and materials reached PLN 609,151 thousand (2018: PLN 606,116 thousand). Operating profit amounted to PLN 5,316 thousand.
Taking into account seasonality of the beer industry, the first quarter has the least impact on the overall annual Group results. Over the coming months, the Group will continue with its successful strategy to date increasing the profitability of sales by developing the offer of premium beers, including beer specialties, flavoured beers and non-alcoholic beers. Notably all of these categories are the fastest growing market segments.
Given an expected further increase in operating costs, the Group will also focus on increasing efficiency of operations whilst maintaining cost discipline.
V.Information concerning seasonal activity of Grupa Żywiec S.A. in presented period
The brewing industry is seasonal, concerning production and selling. In brewing industry the peak of the season falls on summer months.
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CAPITAL GROUP ŻYWIEC S.A. | |
Consolidated quarterly financial statements | |
As on and for the period ended 31.03.2019 | TRANSLATION ONLY |
VI. | Information about inventory write-downs to net value possible to achieve and reversing those write- | ||||
downs (in thousand PLN) | |||||
The Capital Group Żywiec S.A. | |||||
01.01.2019 | 01.01.2018 | ||||
- 31.03.2019 | - 31.03.2018 | ||||
Opening balance | 392 | 3,365 | |||
Increase | 1,715 | - | |||
Decrease | (523) | (2,833) | |||
Closing balance | 1, 584 | 532 | |||
The Parent Company Grupa Żywiec S.A. | |||||
01.01.2019 | 01.01.2018 | ||||
- 31.03.2019 | - 31.03.2018 | ||||
Opening balance | 392 | 3,365 | |||
Increase | 1,663 | - | |||
Decrease | (471) | (2,833) | |||
Closing balance | 1,584 | 532 | |||
VII. | Information about write-downs for impairment of financial assets, tangible fixed assets, intangible assets | ||||
and other assets and reversing those write-downs(in thousand PLN) | |||||
The Capital Group Żywiec S.A. | |||||
Movements on the provision for impairment of trade receivables are as | 01.01.2019 | 01.01.2018 | |||
follows: | - 31.03.2019 | - 31.03.2018 | |||
Opening balance | 14,682 | 13,767 | |||
Provision for impairment of receivables | 206 | 149 | |||
Receivables written off during the year as uncollectible | - | (16) | |||
Unused amounts release | (1,437) | (367) | |||
Closing balance | 13,451 | 13,533 | |||
Movements on the provision for impairment of tangible fixed | 01.01.2019 | 01.01.2018 | |||
assets and intangible assets are as follows: | - 31.03.2019 | - 31.03.2018 | |||
Opening balance | 26,176 | 27,237 | |||
Provision increase | 3,233 | 4,755 | |||
Provision release | (258) | (4) | |||
Closing balance | 29,151 | 31,988 | |||
The Parent Company Grupa Żywiec S.A. | |||||
Movements on the provision for impairment of trade receivables are as | 01.01.2019 | 01.01.2018 | |||
follows: | - 31.03.2019 | - 31.03.2018 | |||
Opening balance | 14,458 | 13,518 | |||
Provision for impairment of receivables | 206 | 77 | |||
Receivables written off during the year as uncollectible | - | (6) | |||
Unused amounts release | (1,437) | (367) | |||
Closing balance | 13,227 | 13,222 | |||
Movements on the provision for impairment of tangible fixed assets and | 01.01.2019 | 01.01.2018 | |||
intangible assets are as follows: | - 31.03.2019 | - 31.03.2018 | |||
Opening balance | 26,002 | 27,177 | |||
Provision increase | 3,233 | 4,755 | |||
Provision release | (233) | (4) | |||
Closing balance | 29,002 | 31,928 |
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Grupa Zywiec SA published this content on 24 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 24 April 2019 07:17:06 UTC